Bitcoin is approaching a moment of ‘critical mass’, says deVere Group CEO

Financial adviser deVere Group says the pursuit of blockchain technology by global central banks is poised to “irreversibly shake up the global payments system” and create a moment of “critical mass” for Bitcoin and others cryptocurrencies in place.

deVere – who is one of the biggest financial advisers in the world – claims that the upheaval of the global Crypto payments system will be “for the best”.

deVere CEO Nigel Green said there is a wave of global blockchain-centric financial innovation as central banks around the world strive to develop their own digital currencies (CBDCs).

This could drive adoption and acceptance of incumbents such as Bitcoin, says Green.

The US Federal Reserve has launched an in-depth discussion paper that will serve as the basis for what will be a follow-up debate on the introduction of a digital dollar.

The US Fed is joining the Bank of England, the Reserve Bank of India, and major European central banks to develop their own digital currencies that will be blockchain-based.

India on Monday announced its pursuit of a digital currency and that it would effectively allow citizens to be active in the crypto market, although a 30% tax on profits will be levied.

“India, like many other countries, has come to the sensible conclusion that banning cryptocurrencies is impossible. It would have been a futile and retrograde decision to do so,” says Green.

He says the clarity provided by the Indian authorities will further strengthen the crypto space and help drive prices higher.

“I am confident that history will show that this is the first step for India to adopt Bitcoin as legal tender in the future. It is still a long way off, but it is definitely a step in that direction. “, adds Green.

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Meanwhile, China is already piloting a digital renminbi.

“Bitcoin and other cryptocurrencies reach the point of critical mass, when a new way of doing things crosses a threshold and takes hold,” says Green.

“Most governments around the world have already realized that digital is the inevitable future of money,” he adds.

deVere Group now comprises 97 different legal entities worldwide and provides a wide range of financial services, including wealth management advice, investment banking, retail banking, asset management, applications Fintech and exposure to cryptocurrencies and NFTs.

deVere finds that the movement towards digital transactions had been happening for years but has accelerated since the start of the pandemic.

“Because of this, and because Bitcoin is out of their control, they are in a race to launch their own digital currencies, fully aware that digital currencies in our digital age simply make sense,” says Green.

He says there is a growing demand for digital assets from governments and their agencies, businesses, and institutional and retail investors.

Recent research by the Bank of Estonia, among others, shows that ongoing developments of the already pioneering blockchain technology will allow for a more powerful and faster payment system than card and payment systems. snapshot currently used in the world today.

“Additionally, payments made with this technology have been found to use less energy than credit card payments by a factor of 1,400,” says Green.

He says blockchain also offers major opportunities to reduce costs and enhance security for both financial institutions and users.

“Large financial institutions, such as banks, could save perhaps tens of billions of dollars each year using distributed ledger technology by decommissioning legacy systems and reducing operating costs,” says Green. .

He says that one of the main advantages blockchain offers to institutions and consumers is against theft and fraud.

“The ability to track funds on a tamper-proof ledger is a powerful preventative security measure,” says Green.

But he admits that Blockchain is still an emerging technology and there are open areas that need to be addressed.

DeVere Group estimates that it may take five to 10 years to reach ultimate maturity.

“Due to the lightning pace of blockchain innovation and adoption across industries, blockchain is poised to irreversibly disrupt the global payment system. It will have a snowball effect,” adds he.

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